Your problem has been addressed by microsoft itself. and it is available at the following link.
http://support.microsoft.com/kb/927836
If you have the manual refer to it and find out the USB version it requires and See the BIOS setting for USB.(High speed/Full speed)
Some cameras only support USB 1.1 it will not work with other high speed USB. this can be modified through some BIOS settings for e.g. "USB 1.1/USB 1.0 comaptibility mode -> Enabled"
Also make sure that you installed the latest drivers for your USB ports.

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you need to look for the up-dated drivers off the camaras web page windows all ways try playing the smart one evert time they do a new copy of windows any thing older that a fuw yearas wont work with xp! its just another con by microsoft!!

Both the Canon XT 350D and the XTi 400D are recognized by any PC with XP windows operative system. It seems you have to check your USB port or USB cable used to connect your cameras to the PC. Sometimes, the PC does not recognize a specific device connected to an USB port. Yopu can get into the System -device manager screen, and uninstall the USB port, and run the utility to recognize changes in the device manager. This will install the USB port driver again, and if it is a software issue the reason of the problem, then it will be fixed.

Also, you can check your cameras and USB cable in a different PC so you can confirm if they both work has should be.

If you are using Windows XP unplug your camera from your PC and uninstall the Kodak software. You don't need it to transfer photos to your PC. The next time you connect your camera (turn the camera on) to your computer it should recognize it and you can use Windows built in transfer software. Details are here:http://www.organizepictures.com/2006/11/5-easy-steps-to-transfer-your-pictures-using-windows-xp-photo-wizard

Install DRIVERS from CD before connecting to the PCDo the wizard stuff.Connect cam to PC using USB cablePress on buttonSelect DSC/DV mode button to read "PC camera" on LCDDo new hardware wizard stuff(Be sure to click "Continue Anyway" when windows kicks the install. Wizard will run again)Finish wizard*************************************************************************************************************************Turn on camselect "PC Camera"Open "My Computer"Double click on the Camera Icon to start webcam!**********************************************************************************************************************

This works for XP SP2. It does seem to crash Firefox when trying to connect to Blogtv which was all I troed using it on. It may have other issues! I actually use a cheap "Gear Head Quick Webcam Basic" that I got at Big Lots for $13 for video conferencing

try another USB port, on the back of the computer. My fromt ones are low power and dont work on half of my devices! Also, reboot the PC when the camera is plugged in, maybe itll pick it up. The camera may be drive mode and not picture mode. I have seen some strange things on 3rd party cameras. My Sony DSC-30 puts all videos in a folder that Picasa never sees, or deletes. I found a 2 year old video in there when I was looking around on the memory stick.

No software required The Win computer should recognise the camera as an extra drive or even put up the Camara/Scammer Wizard.The only possible exception to this is if the camera in question is using internal memort Here you will have yo consult your manual or the menus to discover what to set.

What is ptp utility new to me.
I suggest the first thing to do is if you have the software from the disk loaded - you un install it.
Restart the computer - plug camera in and set it to upload mode. Windows scanner/Camera Wizard will take you along from there.
If it does not change the USB port.
Come back with the next move

If you have a recent operating system, there's a possibility it will recognise the camera if youjust plug it in. If it does recognise it, it will install the correct driver and run a wizard to help you get the pictures on your computer.